AppendixB-416 Agriculture Act of 1949

Q:\COMP\AGCOM\Agricultural Act Of 1949.xml
35

AGRICULTURAL ACT OF 1949
ƒAMENDMENT

Sec. 416

TO SECTION 32≈

SEC. 411. 70
ƒDETERMINATIONS

BY SECRETARY≈

SEC. 412. ƒ7 U.S.C. 1429≈ Determinations made by the Secretary under this Act shall be final and conclusive: Provided, That
the scope and nature of such determinations shall not be inconsistent with the provisions of the Commodity Credit Corporation
Charter Act ƒ(15 U.S.C. 714 et seq.)≈.
ƒRETROACTIVE

EFFECT≈

SEC. 413. ƒ7 U.S.C. 1430≈ This Act shall not be effective with
respect to price support operations for any agricultural commodity
for any marketing year or season commencing prior to January 1,
1950, except to the extent that the Secretary of Agriculture shall,
without reducing price support theretofore undertaken or announced, elect to apply the provisions of this Act.
ƒREPEAL
SEC. 414. 71

OF PREVIOUS LEGISLATION≈

ƒ7 U.S.C. 1421 note≈

OF AGRICULTURAL ACT OF 1948; AMENDMENTS TO SUCH
ACT AND AGRICULTURAL ADJUSTMENT ACT OF 1938≈

ƒAPPLICATION

SEC. 415. (a) ƒ7 U.S.C. 1301 note≈ Except as modified by this
Act or by Public Law 272, Eighty-first Congress ƒ(63 Stat. 670)≈,
sections 201(b), 201(d), 201(e), 203, 207(a), and 208 of the Agricultural Act of 1948 ƒ(62 Stat. 1250)≈ shall be effective for the purpose
of taking any action with respect to the 1950 and subsequent crops
upon the enactment of this Act ƒenacted on October 31, 1949≈. If
the time within which any such action is required to be taken shall
have elapsed prior to the enactment of this Act, such action shall
be taken within thirty days after the enactment of this Act.
(b) ƒ7 U.S.C. 1301 note≈ No provision of the Agricultural Act
of 1948 ƒ(62 Stat. 1247)≈ shall be deemed to supersede any provision of Public Law 272, Eighty-first Congress ƒ(63 Stat. 670)≈.
(c) 72
(d) 73
(e) 74
ƒDISPOSITION

OF COMMODITIES TO PREVENT WASTE≈

SEC. 416. ƒ7 U.S.C. 1431≈ (a) In order to prevent the waste of
commodities whether in private stocks or acquired through pricesupport operations by the Commodity Credit Corporation before they
can be disposed of in normal domestic channels without impairment
of the price-support program or sold abroad at competitive world
70 Sec. 411 amended sec. 32 of the Act entitled ‘‘An Act to amend the Agricultural Adjustment
Act and for other purposes’’, approved Aug. 28, 1935, P.L. 74–320 (7 U.S.C. 612c).
71 Sec. 414 repealed sec. 302 of the Agricultural Adjustment Act of 1938 (7 U.S.C. 1302) and
any provision of law in conflict with this Act.
72 Subsec. (c) amended sec. 301(b)(10) of the Agricultural Act of 1938 (7 U.S.C. 1301(b)(10)).
73 Subsec. (d) amended sec. 301(b)(16) of the Agricultural Act of 1938 (7 U.S.C. 1301(b)(16)).
74 Subsec. (e) repealed secs. 201(c), 205, 206, and 207(c) of the Agricultural Act of 1948 (7
U.S.C. 1301(b)(3)(B) note, 1345 note, 1355 note, and 1343 note).

December 20, 2018

Q:\COMP\AGCOM\Agricultural Act Of 1949.xml
Sec. 416

AGRICULTURAL ACT OF 1949

36

prices, the Commodity Credit Corporation is authorized, on such
terms and under such regulations as the Secretary may deem in the
public interest: (1) upon application, to make such commodities
available to any Federal agency for use in making payment for commodities not produced in the United States; (2) to barter or exchange such commodities for strategic or other materials as authorized by law; (3) in the case of food commodities to donate such commodities to the Bureau of Indian Affairs and to such State, Federal,
or private agency or agencies as may be designated by the proper
State or Federal authority and approved by the Secretary, for use
in the United States in nonprofit school-lunch programs, in nonprofit summer camps for children, in the assistance of needy persons, and in charitable institutions, including hospitals and facilities, to the extent that they serve needy persons (including infants
and children). In the case of (3) the Secretary shall obtain such assurance as he deems necessary that the recipients thereof will not
diminish their normal expenditures for food by reason of such donation. In order to facilitate the appropriate disposal of such commodities, the Secretary may from time to time estimate and announce
the quantity of such commodities which he anticipates will become
available for distribution under (3). The Commodity Credit Corporation may pay, with respect to commodities disposed of under
this subsection, reprocessing, packaging, transporting, handling,
and other charges accruing up to the time of their delivery to a Federal agency or to the designated State or private agency. In addition, in the case of food commodities disposed of under this subsection, the Commodity Credit Corporation may pay the cost of processing such commodities into a form suitable for home or institutional use, such processing to be accomplished through private trade
facilities to the greatest extent possible. For the purpose of this subsection the terms ‘‘State’’ and ‘‘United States’’ include the District of
Columbia and any Territory or possession of the United States.
Dairy products acquired by the Commodity Credit Corporation
through price support operations may, insofar as they can be used
in the United States in nonprofit school lunch and other nonprofit
child feeding programs, in the assistance of needy persons, and in
charitable institutions, including hospitals, to the extent that needy
persons are served, be donated for any such use prior to any other
use or disposition. Notwithstanding any other provision of law, such
dairy products may be donated for distribution to needy households
in the United States and to meet the needs of persons receiving nutrition assistance under the Older Americans Act of 1965 ƒ(42
U.S.C. 3001 et seq.)≈.
(b)(1) The Secretary, subject to the requirements of paragraph
(10), may furnish eligible commodities for carrying out programs of
assistance in developing countries and friendly countries under titles II and III of the Food for Peace Act ƒ(7 U.S.C. 1721 et seq.)≈
and under the Food for Progress Act of 1985 ƒ(7 U.S.C. 1736o)≈,
as approved by the Secretary, and for such purposes as are approved by the Secretary. To ensure that the furnishing of commodities under this subsection is coordinated with and complements
other United States foreign assistance, assistance under this subsection shall be coordinated through the mechanism designated by
December 20, 2018

Q:\COMP\AGCOM\Agricultural Act Of 1949.xml
37

AGRICULTURAL ACT OF 1949

Sec. 416

the President to coordinate assistance under the Food for Peace Act
ƒ(7 U.S.C. 1691 et seq.)≈.
(2) As used in this subsection, the term ‘‘eligible commodities’’
means—
(A) dairy products, wheat, rice, feed grains, and oilseeds acquired by the Commodity Credit Corporation through price support operations, and the products thereof, that the Secretary determines meet the criteria specified in subsection (a); and
(B) such other edible agricultural commodities as may be
acquired by the Secretary or the Commodity Credit Corporation
in the normal course of operations and that are available for
disposition under this subsection, except that no such commodities may be acquired for the purpose of their use under this
subsection.
(3)(A) Commodities may not be made available for disposition
under this subsection in amounts that (i) will, in any way, reduce
the amounts of commodities that traditionally are made available
through donations to domestic feeding programs or agencies, or (ii)
will prevent the Secretary from fulfilling any agreement entered into
by the Secretary under a payment-in-kind program under this Act
or other Acts administered by the Secretary.
(B)(i) The requirements of section 403(a) of the Food for Peace
Act ƒ(7 U.S.C. 1733(a))≈ shall apply with respect to commodities
furnished under this subsection. Commodities may not be furnished
for disposition to any country under this subsection except on determinations by the Secretary that—
(I) the receiving country has the absorptive capacity to use
the commodities efficiently and effectively; and
(II) such disposition of the commodities will not interfere
with usual marketings of the United States, nor disrupt world
prices of agricultural commodities and normal patterns of commercial trade with developing countries.
(ii) The requirement for safeguarding usual marketings of the
United States shall not be used to prevent the furnishing under this
subsection of any eligible commodity for use in countries that—
(I) have not traditionally purchased the commodity from
the United States; or
(II) do not have adequate financial resources to acquire the
commodity from the United States through commercial sources
or through concessional sales arrangements.
(C) The Secretary shall take reasonable precautions to ensure
that—
(i) commodities furnished under this subsection will not
displace or interfere with sales that otherwise might be made;
and
(ii) sales or barter under paragraph (7) will not unduly disrupt world prices of agricultural commodities nor normal patterns of commercial trade with friendly countries.
(D) If eligible commodities are made available under this subsection to a friendly country, nonprofit and voluntary agencies and
cooperatives shall also be eligible to receive commodities for food aid
programs in the country.
(4) Agreements may be entered into under this subsection to
provide eligible commodities in installments over an extended period
December 20, 2018

Q:\COMP\AGCOM\Agricultural Act Of 1949.xml
Sec. 416

AGRICULTURAL ACT OF 1949

38

of time. In agreements with recipients of eligible commodities under
this subsection (including nonprofit and voluntary agencies or cooperatives), subject to the availability of commodities each fiscal
year, the Secretary, on request, shall approve multiyear agreements
to make agricultural commodities available for distribution or sale
by the recipients if the agreements otherwise meet the requirements
of this subsection.
(5)(A) Section 406 of the Food for Peace Act ƒ(7 U.S.C. 1736)≈
shall apply to the commodities furnished under this subsection.
(B) The Commodity Credit Corporation may pay the processing
and domestic handling costs incurred, as authorized under this subsection, in the form of eligible commodities, as defined in paragraph
(2)(A), if the Secretary determines that such in-kind payment will
not disrupt domestic markets.
(6) The cost of commodities furnished under this subsection,
and expenses incurred under section 406 of the Food for Peace Act
ƒ(7 U.S.C. 1736)≈ in connection with those commodities, shall be in
addition to the level of assistance programmed under that Act and
shall not be considered expenditures for international affairs and finance.
(7) Eligible commodities furnished under this subsection may be
sold or bartered only with the approval of the Secretary and solely
as follows:
(A) Sales and barter that are incidental to the donation of
the commodities or products.
(B) Sales and barter to finance the distribution, handling,
and processing costs of the donated commodities or products in
the importing country or in a country through which such commodities or products must be transshipped, or other activities in
the importing country that are consistent with providing food
assistance to needy people.
(C) Sales and barter of commodities and products furnished to intergovernmental agencies or organizations, insofar
as they are consistent with normal programming procedures in
the distribution of commodities by those agencies or organizations.
(D)(i) Sales of commodities and products furnished to nonprofit and voluntary agencies, or cooperatives, for food assistance under agreements that provide for the use, by the agency
or cooperative, of proceeds generated from such sale of commodities or products for the purposes established in clause (ii) of
this subparagraph.
(ii) Proceeds generated from partial or full sales or barter
of commodities by a nonprofit and voluntary agency or cooperative shall be used—
(I) to transport, store, distribute, and otherwise enhance the effectiveness of the use of commodities and the
products thereof donated under this section; and
(II) to implement income generating, community development, health, nutrition, cooperative development, agricultural programs, and other developmental activities.
In addition, proceeds generated in Poland may also be used by
governmental and nongovernmental agencies or cooperatives for
eligible activities approved by the joint commission established
December 20, 2018

Q:\COMP\AGCOM\Agricultural Act Of 1949.xml
39

AGRICULTURAL ACT OF 1949

Sec. 416

pursuant to section 2226 of the American Aid to Poland Act of
1988 and by the United States chief of diplomatic mission in
Poland that would improve the quality of life of the Polish people and would strengthen and support the activities of governmental or private, nongovernmental independent institutions in
Poland. Activities eligible under the preceding sentence include—
(I) any project undertaken in Poland under the auspices of
the Charitable Commission of the Polish Catholic Episcopate
for the benefit of handicapped or orphaned children;
(II) any project for the reconstruction, renovation, or maintenance of the Research Center on Jewish History and Culture
of the Jagiellonian University of Krakow, Poland, established
for the study of events related to the Holocaust in Poland;
(III) any other project or activity which strengthens and
supports private and independent sectors of the Polish economy,
especially independent farming and agriculture; and 75
(IV) the Polish Catholic Episcopate’s Rural Water Supply
Foundation.
(iii) Except as otherwise provided in clause (v), such agreements, taken together for each fiscal year, shall provide for
sales of commodities and products for proceeds in amounts that
are, in the aggregate, not less than 10 percent of the aggregate
value of all commodities and products furnished, or the minimum tonnage required, whichever is greater, for carrying out
programs of assistance under this subsection in such fiscal
year. The minimum allocation requirements of this clause apply
with respect to commodities and products made available under
this subsection for carrying out programs of assistance under titles II and III of the Food for Peace Act ƒ(7 U.S.C. 1721 et
seq.)≈, and not with respect to commodities and products made
available to carry out the Food for Progress Act of 1985. 76
(iv) Proceeds generated from the sale of commodities or
products under this subparagraph shall be expended within the
country of origin within a reasonable length of time, as determined by the Secretary, except that the Secretary may permit
the use of proceeds in a country other than the country of origin
as necessary to expedite the transportation of commodities and
products furnished under this subsection, or to otherwise carry
out the purposes of this subsection.
(v) The provisions of clause (iii) of this subparagraph establishing minimum annual allocations for sales and use of proceeds shall not apply to the extent that there have not been sufficient requests for such sales and use of proceeds nor to the extent required under paragraph (3).
(E) Sales and barter to cover expenses incurred under paragraph (5)(a). 77
75 The preceding two sentences were added by sec. 2225 of the Omnibus Trade and Competitiveness Act of 1988, P.L. 100–418, Aug. 23, 1988. The left margin of the first new sentence was
aligned with the left margin of the clause to effectuate the probable intent of Congress.
76 Sec. 1110 of the Food Security Act of 1985, P.L. 99–198, 95 Stat. 1472, Dec. 23, 1985 (7
U.S.C. 1736o).
77 Reads ‘‘paragraph (5)(a)’’ in the original. It should probably be ‘‘paragraph (5)(A)’’.

December 20, 2018

Q:\COMP\AGCOM\Agricultural Act Of 1949.xml
Sec. 416

AGRICULTURAL ACT OF 1949

40

(F) 78 The provisions of sections 403(i) and 407(c) of the Food
for Peace Act shall apply to donations, sales and barters of eligible
commodities under this subsection.
The Secretary may approve the use of proceeds or services realized
from the sale or barter of a commodity furnished under this subsection by a nonprofit voluntary agency, cooperative, or intergovernmental agency or organization to meet administrative expenses incurred in connection with activities undertaken under this subsection.
(8) ADMINISTRATIVE PROVISIONS.—
(A) EXPEDITED PROCEDURES.—To the maximum extent
practicable, expedited procedures shall be used in the implementation of this subsection.
(B) ESTIMATE OF COMMODITIES.—The Secretary shall
publish in the Federal Register, not later than October 31
of each fiscal year, an estimate of the types and quantities
of commodities and products that will be available under
this section for the fiscal year.
(C) FINALIZATION OF AGREEMENTS.—The Secretary is
encouraged to finalize program agreements under this section not later than December 31 of each fiscal year.
(D) REGULATIONS.—The Secretary shall be responsible
for regulations governing sales and barter, and the use of
foreign currency proceeds, under paragraph (7) of this subsection that will provide reasonable safeguards to prevent
the occurrence of abuses in the conduct of activities provided for in paragraph (7).
(9)(A) Each recipient of commodities and products approved for
sale or barter under paragraph (7) shall report to the Secretary information with respect to the items required to be included in the
Secretary’s report pursuant to clauses (i) through (iv) of subparagraph (B). Reports pursuant to this subparagraph shall be submitted in accordance with regulations of the Secretary. Such regulations shall require at least one report annually, to be submitted not
later than December 31 following the end of the fiscal year in which
the commodities and products are received; except that a report
shall not be required with respect to fiscal year 1985.
(B) Not later than February 15, 1987, and annually thereafter,
the Secretary shall report to the Congress on sales and barter, and
use of foreign currency proceeds, under paragraph (7) during the
preceding fiscal year. Such report shall include information on—
(i) the quantity of commodities furnished for such sale or
barter;
(ii) the amount of funds (including dollar equivalents for
foreign currencies) and value of services generated from such
sales and barter in such fiscal year;
(iii) how such funds and services were used;
(iv) the amount of foreign currency proceeds that were used
under agreements under subparagraph (D) of paragraph (7) in
such fiscal year, and the percentage of the quantity of all com78 Sec. 1514(5)(B) of the Food, Agriculture, Conservation, and Trade Act of 1990, P.L. 101–624,
104 Stat. 3662, Nov. 28, 1990, amended para. (7) by adding at the end thereof subpara. (F).
Subpara. (F) was placed after subpara. (E) (vs. after the last sentence of para. (7)) to effectuate
the probable intent of Congress. Indentation of subpara. (F) was so in original.

December 20, 2018

Q:\COMP\AGCOM\Agricultural Act Of 1949.xml
41

AGRICULTURAL ACT OF 1949

Sec. 416

modities and products furnished under this subsection in such
fiscal year such use represented;
(v) the Secretary’s best estimate of the amount of foreign
currency proceeds that will be used, under agreements under
subparagraph (D) of paragraph (7), in the then current fiscal
year and the next following fiscal year (if all requests for such
use are agreed to), and the percentage that such estimated use
represents of the quantity of all commodities and products that
the Secretary estimates will be furnished under this subsection
in each such fiscal year;
(vi) the effectiveness of such sales, barter, and use during
such fiscal year in facilitating the distribution of commodities
and products under this subsection;
(vii) the extent to which sales, barter, or uses—
(I) displace or interfere with commercial sales of
United States agricultural commodities and products that
otherwise would be made,
(II) affect usual marketings of the United States,
(III) disrupt world prices of agricultural commodities
or normal patterns of trade with friendly countries, or
(IV) discourage local production and marketing of agricultural commodities in the countries in which commodities
and products are distributed under this subsection; and
(viii) the Secretary’s recommendations, if any, for changes
to improve the conduct of sales, barter, or use activities under
paragraph (7).
(10) SALE PROCEDURE.—In approving sales of commodities
under this subsection, the Secretary shall follow the sale procedure described in section 403(l) of the Food for Peace Act.
(11) REQUIREMENTS.—
(A) IN GENERAL.—Not later than 270 days after the
date of enactment of this subparagraph, the Secretary shall
review and, as necessary, make changes in regulations and
internal procedures designed to streamline, improve, and
clarify the application, approval, and implementation processes pertaining to agreements under this section.
(B) CONSIDERATIONS.—In conducting the review, the
Secretary shall consider—
(i) revising procedures for submitting proposals;
(ii) developing criteria for program approval that
separately address the objectives of the program;
(iii) pre-screening organizations and proposals to
ensure that the minimum qualifications are met;
(iv) implementing e-government initiatives and
otherwise improving the efficiency of the proposal submission and approval processes;
(v) upgrading information management systems;
(vi) improving commodity and transportation procurement processes; and
(vii) ensuring that evaluation and monitoring
methods are sufficient.
(C) CONSULTATIONS.—Not later than 1 year after the
date of enactment of this subparagraph, the Secretary shall
consult with the Committee on Agriculture, and the ComDecember 20, 2018